Creating Pathways to Affordable Homeownership Through Community and Banking
Tenants to Homeowners in Kansas helps create long-term affordable housing through its community land trust efforts
Originally published on U.S. Bank company blog
For Heather Dirk at U.S. Bank, housing affordability — whether it’s a person’s first time purchasing a home or looking for a new home for a growing family — is always top of mind.
“There’s a lot to think about: down payments, mortgage payments, insurance,” said Dirk, a mortgage loan officer. “For some, the costs might make it seem like homeownership is out of reach, but there are pathways and support here at U.S. Bank and in your community to help you get there.”
That support can come in many forms, from the that provides down payment assistance and flexible credit requirements to community organizations like Tenants to Homeowners.
“Our goal is to keep housing affordable, which has been a challenge,” said Ashley Taylor, an assistant director at Tenants to Homeowners, which helps buyers and sellers. “Right now, we have 116 houses and 143 affordable rentals currently in trust, and we’re building more. However, costs have gone through the roof since the pandemic due to a shortage of materials, demand for subcontractors and more.”
Based in Lawrence, Kansas, Tenants to Homeowners is geared toward making housing permanently affordable in its community. Founded in 1992 as a community housing development organization and transformed into a community land trust in 2005, the organization builds and stewards affordable homes.
Using grants, it is able to build both rental units and homes for purchase. The homes the organization sells are offered at prices below market value to low- to moderate-income buyers as defined by the U.S. Department of Housing and Urban Development.
When a homeowner is ready to sell the property, Tenants to Homeowners finds another income-eligible buyer and stewards the resale of the home at an affordable price that gives the seller a fair return on their investment and ensures it is still affordable for the new buyer. Through this approach, community land trusts aim to balance an individual’s need to build wealth and a community's need to have a stock of affordable starter homes.
Right now, Tenants to Homeowners has 13 projects in progress, including rentals and homes for sale. As those homes are being built, Taylor is focused on helping individuals and families prepare for homeownership.
“For some, the costs might make it seem like homeownership is out of reach, but there are pathways and support here at U.S. Bank and in your community to help you get there.”
- Heather Dirk, U.S. Bank mortgage loan officer
“I do a phone interview, go over all the high points on how it works and gather general information about them from their credit score to how many people are in their household,” Taylor said. “If they qualify for the program, they must attend a homebuyer workshop. I do five a year and do tailored workshops for free, so grants like the one from the U.S. Bank Foundation allow me the time and ability to reach out to all of these people.”
The grants from the U.S. Bank Foundation totaled $65,000 over the past two years and support financial education for future homebuyers as well as its staff.
For buyers, Taylor’s workshops cover a variety of topics, including what lenders look for, what relationships homebuyers need and how a credit score is determined.
“There was no education like this when I first bought my home,” Taylor said. “There’s so little education about buying a home when it’s literally the most expensive thing you are going to buy. I help them get a better idea what they need to do, understand what they’re comfortable with and where there might be down payment assistance or other programs such as those that can help them repair or build credit.”
For Kristen Polchinski, a community affairs manager at U.S. Bank, supporting organizations like Tenants to Homeowners helps create opportunities for long-term wealth building.
“Owning a home is a powerful wealth builder, but not everyone is in a place to purchase,” Polchinski said. “Organizations like Tenants to Homeowners, as well as our own bankers who provide financial education across the country, are dream makers — helping people become mortgage-ready and finding a path forward that works for them and their goals.”
Taylor said she continues to look to the future, creating a brochure of local resources as well as undergoing additional training to prepare homeowners who are now in their 70s with estate planning preparedness and providing financial education for the next generation of homeowners.
“I really love what I do,” she said, adding that 40% of the Lawrence population is eligible for the program based on the most recent U.S. Census. “I sold real estate on the open market for eight years and have a degree in social work. This brings that all together.”
U.S. Bank mortgage professionals support the homebuying to homeownership journey:
- Working with a U.S. Bank mortgage loan originator to understand what you can afford and what your borrowing options are, including any down payment assistance programs you may qualify for.
- Get pre-approved for a mortgage to begin your home search.
- Once you are in your home, your dedicated U.S. Bank mortgage loan originator can help you understand options to access your home’s equity or refinance.
